Deputy minister of industry, mine and trade announced the presence of
Russian companies and their investment in Iran’s mining and mineral
industries.

Dr. Mehdi Karbasian, CEO of IMIDRO (Iranian Mines & Mining Industries
Development & Renovation Organization), said: “We forecast an investment of
one billion dollars by the Russians in this sector. There will be no
restrictions if some challenges and monetary and banking problems are
solved. We hope that the final deal will be concluded with the Russian side
as soon as possible.”

He added: “Following the visit of President Hassan Rouhani to Moscow, a
number of large Russian companies have come to Iran to study grounds for
investment in exploration and mineral industries as well as fields such as
copper and zinc. They have held negotiations with various parties in Iran,
including IMIDRO. Of course, they have not yet come to a final conclusion,
but we hope the talks will have good results.”

Karbasian said: “Two Russian companies have come to Iran; one of them has
received blueprints and will soon submit its proposals. We have agreed to
make joint investments in two exploratory areas. The consortium includes
Golgohar, Sarcheshmeh Copper, Chadormalou and Mines and Metals Investment
Development Company. In fact, this Iranian-foreign venture is after
exploring new mines in the areas of interest and finding new mineral
deposits.”

Noting that the investment of this project is SBI foreign investment, the
IMIDRO chief continued: “There is another major Russian company we have
reached initial understanding with so that funding will come from the sale
of Iranian oil in Russia. We have reached an agreement of $1 billion
annually in general but the Russians want to deliver half of the money in
the form of goods. The Central Bank of Iran (CBI) however insists that all
the money should be paid in cash.”

Noting that these theoretical disagreements should end in the national
interests of Iran, Karbasian said the Russians argue that if they are
supposed to sell Iranian oil and make the whole payment in cash it would not
be beneficial for them. That is why they insist to pay part of the money in
kind. If this does not happen, they would probably refuse to strike a deal
because they believe they would lose money.

He said IMIDRO, with the help of the Trade Promotion Organization of Iran,
has made a priority arrangement in this regard according to which Iranian
companies can provide Iran with its necessary and strategic needs and buy
from Russia. Of course, there should be a plan on how to make the payments
because the CBI wants to get all the credits in cash so that it could
provide rubles to the businessmen. But given the shortage of liquidity in
the market and the need to support national production, it is expected to
provide a more appropriate approach to producers.

He said Mehdi Abad area has been completely handed over to the Iranian
investors, adding: “It is possible to benefit from services of a Russian
consultant but the partners are all Iranians.”
Karbasian said Russia is among the five top countries in the area of mine
and mining industries with valuable experience in the field.

He added that IMIDRO, along with other government agencies, has been
preparing the ground for $1 billion in Russian investment in Iranian mines
and mining industries.

The scope of activity is not restricted to certain mineral areas but could
cover primary materials such as alumina powder, coke coal, some other
cyanide minerals and other basic materials needed for the production of
gold, drilling machines, mineral machinery, etc, he said, adding that these
items are not produced inside the country and Russia can become a major
supplier of these items.